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CELLULAR COMMUNICATIONS, INC. ANNOUNCES OPERATING RESULTS FOR SECOND QUARTER OF 1993

 NEW YORK, Aug. 13 /PRNewswire/ -- Cellular Communications Inc. (NASDAQ: COMMA) ("CCI") announced today its operating results for the three and six months ended June 30, 1993.
 On Aug. 1, 1991, CCI and PacTel Corporation ("PacTel") formed a joint venture equally owned by CCI and PacTel comprised of CCI's cellular telephone interests in Ohio and PacTel's cellular telephone interests in Michigan and Ohio.
 The following summarizes the results of the joint venture for the three and six months ended June 30, 1993 and 1992:
 CCI/PACTEL JOINT VENTURE
 (In thousands, except subscribers)
 Three Months Ended June 30, 1993 1992
 Revenues:
 Service $ 100,139 $ 77,045
 Equipment, net 5,165 3,866
 105,304 80,911
 Expenses:
 Operating 22,641 16,980
 SG&A 33,696 29,640
 56,337 46,620
 Operating income 48,967 34,291
 Depreciation and amortization (20,590) (15,361)
 Interest and other, net (403) 351
 Net income $27,974 $19,281
 Ending subscribers 411,000 324,000
 Six Months Ended June 30, 1993 1992
 Revenues:
 Service $ 182,373 $ 145,373
 Equipment, net 9,573 6,895
 191,946 152,268
 Expenses:
 Operating 42,396 32,280
 SG&A 64,142 58,742
 106,538 91,022
 Operating income 85,408 61,246
 Depreciation and amortization (39,309) (29,602)
 Interest and other, net (69) 276
 Net income $46,030 $31,920
 Ending subscribers 411,000 324,000
 Discussion of Joint Venture Second Quarter Results
 Service revenue increased to $100,139,000 from $77,045,000 as a result of subscriber growth.
 The income from telephone equipment (before depreciation of rental telephones) increased to $5,165,000 from $3,866,000 because of increased telephone rental income.
 Operating expenses increased to $22,641,000 from $16,980,000 primarily because of increases in subscriber usage, roaming activity and property taxes.
 Selling, general and administrative expenses increased to $33,696,000 from $29,640,000, but declined as a percentage of service revenue from 34 percent from 38 percent. The decline in percentage terms is due to the conversion of the Michigan billing system from an outside provider to internal operations and a decline in the selling costs per new activation, while the increase in absolute costs is due to increases in selling costs, bad debt expenses and payroll.
 Depreciation and amortization increased to $20,590,000 from $15,361,000 due to the depreciation of additional cellular network equipment and rented telephones.
 Interest and other, net changed to $(403,000) from $351,000 because 1993 includes a $763,000 loss on disposals of primarily obsolete network equipment and 1992 includes $24,000 loss on disposals of equipment. Net interest income was $531,000 and $430,000 in 1993 and 1992, respectively.
 CELLULAR COMMUNICATIONS, INC.
 (In thousands, except per share data)
 Three Months Ended June 30, 1993 1992
 Revenues:
 Equity in net income of joint venture $ 14,340 $ 10,001
 Management fees 12 23
 14,352 10,024
 Expenses:
 S,G&A 3,598 3,654
 Operating income 10,754 6,370
 Depreciation and amortization (575) (662)
 Net interest (expense) (2,835) (2,858)
 Equity in net loss of unconsolidated
 subsidiary -- (284)
 Non-recurring charges -- 111
 Income before income taxes
 and extraordinary item 7,344 2,677
 Provision for income taxes (2,515) (1,258)
 Income before extraordinary item 4,829 1,419
 Income tax reduction resulting
 from utilization of net operating
 loss carryforwards -- 1,153
 Net income $ 4,829 $ 2,572
 Net income per common share:(A)
 Income before extraordinary item $ .11 $ .02
 Extraordinary item -- .03
 Net income $ .11 $ .05
 Weighted average shares 44,270 43,765
 NOTE: (A) The net income per share is calculated after deducting the accrued dividend requirements on CCI's redeemable preferred stock of $0 and $525,000 for the three months ended June 30, 1993 and 1992, respectively, from the net income for the period.
 Three Months Ended June 30, 1993 1992
 Revenues:
 Equity in net income of joint venture $ 23,730 $ 16,683
 Service -- 1,293
 Management fees 26 191
 Equipment, net -- 41
 23,756 18,208
 Expenses:
 Operating -- 572
 SG&A 7,538 9,129
 7,538 9,701
 Operating income 16,218 8,507
 Depreciation and amortization (1,150) (2,600)
 Net interest (expense) (5,867) (6,582)
 Equity in net loss of unconsolidated
 subsidiary -- (284)
 Non-recurring charges -- (396)
 Income (loss) before income taxes,
 extraordinary item and cumulative
 effect of accounting change 9,201 (1,355)
 Provision for income taxes (3,134) (1,258)
 Income (loss) before extraordinary
 item and cumulative effect of
 accounting change 6,067 (2,613)
 Income tax reduction resulting
 from utilization of net operating
 loss carryforwards -- 1,153
 Cumulative effect of change in
 accounting for income taxes 8,000 --
 Net income (loss) $ 14,067 $ (1,460)
 Net income (loss) per common share:(A)
 Income (loss) before extraordinary
 item and cumulative effect of
 accounting change $.14 $(.09)
 Extraordinary item -- .03
 Cumulative effect of change in
 accounting for income taxes .18 --
 Net income (loss) $ .32 $ (.06)
 Weighted average shares 44,099 42,154
 (A) The net income (loss) per share is calculated after deducting the accrued dividend requirements on CCI's redeemable preferred stock of $35,000 and $1,050,000 for the six months ended June 30, 1993 and 1992, respectively, from the net income for the period.
 Discussion of CCI Second Quarter Results
 Equity in net income of joint venture increased to $14,340,000 from $10,001,000 because of the increase in the net income of the joint venture.
 Management fees for the management of certain RSA markets on behalf of the owners (and subject to their direction and control) decreased to $12,000 from $23,000 because the company acquired and contributed the Ashtabula, Ohio RSA to the joint venture on Jan. 1, 1993, in accordance with the merger agreement.
 Selling, general and administrative expenses decreased to $3,598,000 from $3,654,000. Included in the 1993 and 1992 amounts is $2,729,000 of non-cash expense related to the changes made to the stock option agreements at the time of the merger agreement.
 Depreciation and amortization decreased to $575,000 from $662,000. Included in the 1992 amount was $92,000 of license acquisition cost amortization for cellular licenses that were sold or contributed to the joint venture.
 Net interest expense decreased to $2,835,000 from $2,858,000 primarily because the interest rate on the company's bank loan was lower in 1993 and the effective interest rate and principal balance of the CCPR note receivable increased in 1993.
 -0- 8/13/93
 /CONTACT: Stanton N. Williams, director - corporate development, 212-906-8448, or Richard J. Lubasch, vice president - general counsel, 212-906-8470, both of Cellular Communications, Inc./
 (COMMA)


CO: Cellular Communications, Inc. ST: New York IN: TLS SU: ERN

LD-TM -- NY076 -- 2737 08/13/93 17:26 EDT
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